In the case of Conley v Tennessee Farmers, the Court of Appeals held that a misrepresentation as to prior foreclosure on an application is sufficient to void coverage as such misrepresentations increased the risk of loss as a matter of law. The Court of Appeals held:
Continue Reading Misrepresentation as to prior foreclosure voids policy, even if innocently made
Application Misrepresentations
Misrepresentation at Inception of Policy is Effective to Void Coverage Even After Renewals
I draw your attention to the June 25 Tennessee Court of Appeals decision in the case of Dutton v. Tennessee Farmers Mutual Insurance Company which addressed the question of whether misrepresentations made on an initial policy application which unquestionably increased the risk of loss would still operate to void that coverage when multiple renewals of coverage had taken place. Dutton v TN Farmers. The applicants unquestionably made misrepresentations on the policy application which were material, specifically dealing with drug use and convictions for drug related crimes. After the policy was issued (based upon that application), time passed, and multiple renewals occurred. In pertinent part, the changes made to the policy included the deletion of the individual who had the drug related problems. The insured argued the changes to the policy meant the misrepresentations no longer had any bearing on the risk that Tennessee Farmers was insuring.
Continue Reading Misrepresentation at Inception of Policy is Effective to Void Coverage Even After Renewals
What Misrepresentations Increase the Risk of Loss?
The Court of Appeals recently provided further insight on what type of misrepresentations increase the risk of loss. In the case of Freeze v. Tennessee Farmers Mutual Insurance Company, filed March 28, 2017 (Freeze v. TFMIC), the Eastern Section Court of Appeals upheld the grant of summary judgment to Tennessee Farmers in a case which alleged misrepresentation under T.C.A. § 56-7-103, which provided as follows:Continue Reading What Misrepresentations Increase the Risk of Loss?
SUIT AGAINST US CLAUSE APPLIES TO ALL CLAIMS INCLUDING FAILURE TO PROCURE
The Court of Appeals recently issued its opinion in Maples v. Tennessee Farmers Mutual Insurance Co., E2015-00285-COA-R3-CV (Tenn. Ct. App. 2015). The Maples case dealt with fire damage to the Maples’ home in Crossville, Tennessee, insured with Tennessee Farmers Mutual Insurance Company. Coverage was denied on August 26, 2013. Suit was filed on August…
Morrison v. Allen, Part II
Yesterday I wrote about the February 2011 landmark decision of the Tennessee Supreme Court in Morrison v. Allen. There was one relatively minor point concerning an alleged misrepresentation in an application that grabbed my attention. In Morrison, the insurance company denied Ms. Morrison’s claim for life insurance benefits based on alleged misrepresentations of…
Misrepresentation on Application Concerning Ownership of Property Voids Policy
On April 30, 2009, the Tennessee Court of Appeals issued yet another opinion on the topic of misrepresentations on insurance applications. The case is Tennessee Farmers Mut. Ins. Co. v. Farrar (view slip opinion here).
First, it should be noted that T.C.A. 56-7-103 provides that a misrepresentation on an application voids the policy if…